Cai Gaihuan: Perpetual Capital Charitable Trusts Are Stable Investors for Financial Institutions

On December 12, at the "19th Huaxia Institutional Investors Annual Conference and Huaxia Financial (Insurance) Technology Forum," Cai Gaihuan, Chief Economist of the China Trust Industry Association and Director of the Charitable Trust Committee of the China Charity Alliance, delivered a keynote speech. He highlighted that perpetual capital charitable trusts serve as stable investors for financial institutions.

Cai emphasized that charitable trusts are a philanthropic approach encouraged in China and a key business area promoted by regulators for trust companies. Under the guidance of national authorities in recent years, charitable trusts have achieved steady growth, with trust companies becoming the primary trustees. As of November this year, the registered scale of charitable trusts in China reached 9.96 billion yuan, with 392 new filings from January to October. Latest statistics show that as of last Friday, the registered scale surpassed the 10 billion yuan milestone, playing a positive role in advancing common prosperity.

Cai noted that perpetual charitable trusts currently dominate China's charitable trust landscape. Their perpetual and stable capital forms the foundation for their role as long-term institutional investors.

Looking ahead, Cai believes that with the rapid development of philanthropy and the maturing capital markets in China, perpetual charitable trusts will continue to expand. Overseas, perpetual family charitable trusts have already become a mainstream trend in wealth management and inheritance. Their growing scale will further enhance their significance in capital markets.

"As institutional investors combining public welfare and market attributes, perpetual capital charitable trusts not only provide sustainable funding for philanthropy but also act as 'guardians of value' in capital markets through long-term investment strategies, stable capital supply, and professional management," Cai concluded. He added that these trusts will play an increasingly vital role in fostering high-quality development and a stable market ecosystem, achieving a win-win for both social and market value.